This week sees a number of economic data releases due which could cause volatility in the currency markets, this is on top of the on going banking issues in the UK which this morning has seen the Barclays Chairman resign and the seemingly never ending debt issues in Europe. One of the key data sets of note is this Thursday’s Bank of England (BoE) and European Central Bank (ECB) interest rate decisions. While we may not see any movement in the interest rates from either of the central banks the big news will be whether the BoE decide to introduce further Quantitative Easing (QE) into the economy. Last month we saw the vote was 5-4 against introducing more QE however a deteriorating economy may prompt a change in outlook for some of the voting members of the BoE and therefore we may see the vote change in favour of more QE. As we have seen before just the mention of QE can weaken Sterling as it effectively means more money is being pumped into the system which increases supply and as a result weakens the value of the currency. So, if you have a currency transfer to make make sure you stay in close contact with one of your currency brokers here at Foreign Currency Direct so they can keep you informed of the latest news.
Other economic data of note this week is European Unemployment figures this morning, Australian interest rate decision on Tuesday, UK mortgage and producer price figures also on Tuesday, European retail sales figures on Wednesday, US employment figures on Thursday and Producer Price Index for the UK on Friday.
As we regularly see these economic data sets can have a big impact on the currency markets, so, if you need to transfer money abroad and are looking for the best exchange rates make sure you speak to one of our experienced currency brokers at Foreign Currency Direct so they can keep you informed of all the latest news so you can make the most informed decision on when to convert your funds. You can call straight through to the dealing floor for free on 0800 328 5884 or email us on firstname.lastname@example.org